In last year’s UK 200 we introduced a new ranking, the UK Market Register. This analysed the top 100 largest firms by their UK, as opposed to global, revenue. It included the UK operations of overseas-headquartered, primarily US-led, firms, at a stroke detailing the progress several of these had made in this market.
In last year’s UK 200 we introduced a new ranking, the UK Market Register. This analysed the top 100 largest firms by their UK, as opposed to global, revenue. It included the UK operations of overseas-headquartered, primarily US-led, firms, at a stroke detailing the progress several of these had made in this market.
This redrawn map put the growth trajectories and global positioning of numerous firms into perspective. As we put it, “with this ranking a different picture emerges, with the battleground for the £11.3bn UK legal market clearly being fought in the 21-40 revenue bracket”.
This group included the London offices of global firms such as Baker & McKenzie, Latham & Watkins and White & Case. It also featured Asia Pacific-headquartered giants King & Wood Mallesons and Slater & Gordon along with several of the US-dominated but UK legacy firms that have grown significantly via merger in recent years, notably Squire Patton Boggs, Mayer Brown, Reed Smith and the non-stop growth machine that is Dentons.
Nestling cosily in the lower half of the 21-40 group last year with a revenue of £111m was Wragge & Co, the final time the firm formerly best known as an all-equity Birmingham heavyweight would appear in the list in that incarnation.
Last year Wragges merged with Lawrence Graham. With the benefit of hindsight this deal not only transformed it into Wragge Lawrence Graham & Co but also paved the way for a much bigger deal.
This week’s feature gets under the skin of the UK firm’s tie-up with Canada’s Gowlings. It not only answers the question ‘why?’ but also poses the logical question ‘what next?’
For many observers the obvious next step would appear to be America. Just ask Norton Rose. But as we reveal today, Australia, East Asia or Mexico are much likelier candidates for the new firm’s continued international expansion, with significant German growth also on the cards.
The party line, inevitably, is that a US deal would kill off referrals. But the fact is that last year less than £13m of Wragges’ £181m revenue, some 7 per cent, was generated this way.
Gowlings’ US referrals level is likely to be much higher, but enough to rule out a US deal at some point down the track, one that would help the firm achieve its new game plan of playing in the bigger, global league? Unlikely.
